Zuckerberg: Meta could challenge AWS, Azure in cloud computing

Mark Zuckerberg has hinted that Meta's massive artificial intelligence investments could reshape the cloud computing landscape. Speaking at Meta's annual shareholder meeting, Zuckerberg said the company is actively considering entering the cloud business if its sprawling data centre investments produce excess capacity potentially challenging Amazon Web Services, Microsoft Azure, and Google Cloud.

The firm's projected spending for next year has been increased sharply, now ranging between $125 billion and $145 billion compared to earlier projections of spending $115–$135 billion.

This huge spending has scared off investors, who saw stocks fall by 7% in April due to fear about the scale of the expenditure. However, Zuckerberg considered such expenditure an opportunity. "Sure, it's definitely on the table," he said regarding the prospects of moving into the cloud computing industry.

The company already receives regular enquiries from outside firms wanting to rent access to its computational capacity.

Zuckerberg emphasised that Meta's overbuilding strategy comes with a safety valve. If the company finds itself with excess capacity, it can generate revenue by leasing it out, precisely what AWS, Azure, and Google Cloud do.

"If we get to a point where we feel that we have overbuilt, then that is an option that we have," Zuckerberg said. This flexibility, he argued, justifies the aggressive spending.

Meta is focusing on developing premium versions of AI-powered virtual assistants based on Llama 3 and Muse Spark technology. Zuckerberg indicated that there is going to be an increasing demand from users for premium agents that can become additional revenue streams for Meta.

Meta revealed that it would start offering subscription services for the Meta AI app and website, available at a cost of either $7.99 or $19.99 per month. The launch starts in Singapore, Guatemala, and Bolivia as Meta charges customers for AI services for the very first time.